A Hardship Payment is a reduced amount of financial support provided by the Department for Work and Pensions (DWP) if your Universal Credit, Jobseeker’s Allowance (JSA), or Employment and Support Allowance (ESA) has been reduced or stopped due to a sanction. It is designed to cover essential needs such as food, heating, and hygiene products when you have no other resources available. For Universal Credit claimants, a Hardship Payment is typically a loan that is automatically recovered from your future benefit payments, whereas for JSA and ESA claimants, it may not always be repayable depending on your circumstances.
To qualify, you must demonstrate to the Jobcentre that you cannot meet your immediate basic needs without this support. You generally cannot apply until the actual payment reduction has taken place on your scheduled payday.
What Is a Hardship Payment?
A Hardship Payment serves as a financial safety net of last resort. It acts as a bridge for claimants who have been “sanctioned”—a penalty where benefits are cut because the DWP believes you failed to meet the conditions of your claim (e.g., missing an appointment or refusing work).
The “Safety Net” Principle
The payment is roughly 60% of your standard allowance (the basic amount of benefit you get before housing or child elements are added). It is not a full replacement of your lost benefit. Its sole purpose is to prevent destitution, specifically ensuring you can afford:
- Food
- Heating
- Hygiene
- Accommodation costs (if not covered by Housing Benefit/Housing Element)
The Difference Between Benefits
It is critical to understand which benefit you are on, as the rules differ:
- Universal Credit: The payment is almost always a loan (Recoverable Hardship Payment). You will pay it back via deductions from your future benefits once the sanction ends.
- JSA / ESA: If you are in a “vulnerable group” (e.g., you have children or a chronic health condition), you can often access this payment immediately. If you are not vulnerable, you may have to wait 14 days. These are usually not repayable, but you must check your specific award letter.
Eligibility Criteria: Do You Qualify?
Getting a Hardship Payment is not automatic. You must pass a “hardship test” administered by the DWP. You must prove that you have exhausted all other avenues of support.
The Financial “Destitution” Test
The DWP decision-maker must be satisfied that without this payment, you will face severe suffering or privation. You must show:
- Essential Needs: You cannot pay for rent, heating, food, or hygiene.
- No Alternative Funds: You have no savings, no earnings, and no other income sources.
- Cost Cutting: You have stopped all “non-essential” spending (e.g., subscriptions, entertainment, tobacco, alcohol).
- External Support: You have attempted to get help from friends, family, or other charities and they cannot help you.
Compliance Condition
You must also be currently complying with your work search requirements. If you are still failing to attend appointments or look for work, your application will likely be rejected. You must re-engage with the Jobcentre before or at the time ofapplying.
How to Apply for a Hardship Payment
The application process varies slightly depending on whether you receive Universal Credit or legacy benefits. You generally cannot apply in advance; you must wait until you have actually received the reduced payment.
Universal Credit Applicants
There is no paper form for Universal Credit hardship payments in most cases.
- Check Your Journal: Often, a note will appear in your Universal Credit online journal confirming you have been sanctioned.
- Call the Helpline: You typically need to call the Universal Credit helpline.
- Telephone: 0800 328 5644
- Textphone: 0800 328 1344
- The Interview: You will verify your identity and answer questions about your spending and hardship. You may be asked to provide bank statements or proof of bills to show you have no money.
- Journal Note: Sometimes you can request the application via your Journal, but a phone call is faster for immediate decisions.
JSA and ESA Applicants
For legacy benefits, the process often involves a physical form.
- Form JSA10: For Jobseeker’s Allowance, you usually need to fill out form JSA10 (Hardship).
- Jobcentre Visit: You can pick this form up from your local Jobcentre Plus or ask for it over the phone.
- Vulnerable Groups: If you have children or a disability, mention this immediately. It allows you to skip the 14-day waiting period often applied to single, healthy claimants.
Repayment Rules (Recoverable Hardship Payments)
For Universal Credit claimants, the “Recoverable Hardship Payment” (RHP) creates a debt to the DWP. This is a controversial aspect of the system, but you must understand it to budget effectively.
How Repayment Works
Once your sanction ends and your normal payments resume, the DWP will automatically start deducting money to repay the Hardship Payment.
- The Rate: They can deduct up to 25% of your standard allowance (or 15% if you have other debts like rent arrears).
- The Duration: Deductions continue every month until the total amount is repaid.
Stopping Repayment (The Write-Off Rule)
There is a specific rule that allows for the debt to be written off, but you must apply for it; it is not automatic. The DWP may write off your Hardship Payment debt if:
- Earnings Threshold: You have earned at or above the minimum wage threshold (for your expected hours) for at least 6 months.
- Compliance: You have met all your work-related requirements during that period. Note: This write-off policy is complex and subject to change; always ask your work coach about the current status of RHP write-offs.
Practical Information and Planning
Applying for a Hardship Payment is stressful. Being prepared with the right documents and knowing who to call can speed up the process.
Contact Information
- Universal Credit Helpline: 0800 328 5644 (Mon–Fri, 8am–6pm). Calls are free.
- JSA / ESA Contact: 0800 169 0310.
- Local Jobcentre: Open typically 9am–5pm. You may need to arrange an appointment to sign forms.
What to Prepare Before the Call
Do not call empty-handed. Have the following ready:
- Bank Balance: Know exactly how much is in your account (even if it’s £0.00).
- Monthly Expenses: A list of what you pay for rent, electricity, gas, and food.
- Proof of Rejection: Be prepared to say, “I asked my parents for money, but they cannot help,” or “I checked for other grants but was ineligible.”
- Evidence of Compliance: “I have attended all my appointments this week.”
Timelines: When Will I Get Paid?
- Decision: Decisions are often made on the same day or within 24 hours of the interview/form submission.
- Payment: If approved, payment is usually “Fast Pymt” (Faster Payment) and can arrive in your bank account within hours, or at most 3 working days.
Tips for Visitors to the Jobcentre
- Go Early: If you need a form, go as soon as they open. Hardship applications take time to process.
- Stay Calm: The staff dealing with hardship payments are following strict criteria. Being angry about the sanction (even if justified) can delay the hardship application. Focus on your current lack of food/heat, not the fairness of the sanction history.
- Bring ID: Always bring your passport or bank card.
Hardship Funds vs. Hardship Payments
It is crucial not to confuse DWP Hardship Payments with other “Hardship Funds.” They are completely different pots of money.
Household Support Fund (HSF)
This is money given to local councils by the government to help with the cost of living.
- Not a Loan: This is usually a grant. You do not pay it back.
- Eligibility: You do not need to be sanctioned. You just need to be on a low income.
- Apply: Via your local council website.
Discretionary Housing Payment (DHP)
This is for rent shortfalls.
- Usage: If your Universal Credit housing element doesn’t cover your full rent.
- Sanctions: Sometimes you cannot get DHP if your rent arrears are solely due to a sanction, but it is worth checking with your council.
Local Welfare Assistance
Many councils have “Crisis Grants” or “Community Care Grants” for items like cookers or beds, or emergency cash for food. These are separate from the DWP.
Frequently Asked Questions
1. Do I have to pay back a Hardship Payment? If you are on Universal Credit, yes. It is a loan and will be deducted from future benefits. If you are on JSA or ESA, usually no, provided you meet the criteria, but verify this with your advisor at the time of claim.
2. How much is a Hardship Payment? It is typically calculated as 60% of your daily Standard Allowance multiplied by the number of days the hardship payment covers (usually until your next payday).
3. Can I get a Hardship Payment immediately? You cannot apply until your benefit payment has actually been reduced on payday. Once you apply, if successful, the money can be in your account within hours or a few days.
4. What can I spend the money on? It is for essentials only: food, heating, hygiene, and accommodation. It is not for debt repayment (credit cards), alcohol, or cigarettes.
5. Can I get a Hardship Payment if I have savings? Generally, no. If you have savings accessible to you, the DWP will expect you to use those first before granting hardship relief.
6. What if my application is refused? You can ask for the decision to be reconsidered (Mandatory Reconsideration). While waiting, you should contact your local council for the Household Support Fund or a local food bank.
7. Does a Hardship Payment cover my rent? If you get the Housing Element of Universal Credit, that portion should usually still be paid to you (or your landlord) even during a sanction, as sanctions typically affect the Standard Allowance.The Hardship Payment covers the loss of your daily living money.
8. Can I apply for a Hardship Payment more than once? Yes. If your sanction lasts multiple months, you must apply for a separate Hardship Payment each month. It does not roll over automatically. You have to prove hardship every time.
9. Will applying for hardship affect my credit score? No. DWP loans and benefit advances do not appear on your standard credit file (Experian/Equifax). However, the reduced income might cause you to miss other bill payments, which will affect your score.
10. What constitutes a “Vulnerable Group” for JSA/ESA? This includes claimants who are pregnant, have children, have a chronic health condition or disability, or care for someone who does. Being in this group allows you to access hardship payments without the standard 14-day waiting period.
11. Is there a limit to how much is deducted for repayment? Yes. The DWP has a cap on deductions (usually 25% of your standard allowance). If this causes you further hardship, you can contact Debt Management to request lower installments.
12. How do I stop the repayments? You cannot simply stop them, but if the deduction rate is causing you to rely on food banks, you can call DWP Debt Management (0800 916 0647) to discuss a temporary reduction or “deferral” of the repayment.
13. Can I get a Hardship Payment for a “Budgeting Loan” refusal? No. Hardship payments are specifically for sanctions. If you need money for a washing machine or clothes, you need a Budgeting Advance, not a Hardship Payment.
14. Do I need to provide receipts? The DWP rarely asks for receipts of what you bought with the Hardship Payment, but they will ask for bank statements during the application to prove you had no money to begin with.
15. Can I get a Hardship Payment if I quit my job? If you quit your job voluntarily without good reason, you may be sanctioned. Once the sanction applies and your payment stops, yes, you can apply for a Hardship Payment if you cannot afford to eat.
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